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Precious Metals Fall, Crude Oil & Copper Gain as Coronavirus Vaccine News Continues to Affect Markets

November 24, 2020 at 9:55 by Vladimir Vyun

Gold and silver fell, while crude oil and copper rallied during Tuesday’s trading session. Markets remained under the effect of the positive news about the coronavirus vaccine development, which encouraged investors to be bolder and seek riskier assets.

Yesterday, AstraZeneca reported that its vaccine shows 90% efficiency. The news followed similar reports from Pfizer/BioNTech and Moderna. The prospects for a coronavirus vaccine means that countries across the world will be able to reopen their economies. That promises a higher demand for crude oil and copper. At the same time, precious metals suffer as the resulting economic recovery will make them less appealing in their role as a safe haven.

Yesterday’s US data suggested that the US economy remains strong, further adding to the positive market sentiment. Markit reported that both US manufacturing and services Purchasing Managers’ Indices climbed this month according to the flash estimate, meaning that both sectors accelerated their growth.

Now, traders wait for the release of monetary policy minutes by the Federal Reserve on Wednesday as well as for US gross domestic product, also released tomorrow. There will be a huge amount of macroeconomic releases in the United States tomorrow as many reports were shifted to Wednesday due to the Thanksgiving Day on Thursday.

Futures for delivery of WTI crude oil in January climbed by $0.4 (0.93%) to $43.46 per barrel as of 9:52 GMT on NYMEX today. Brent crude rallied by $0.35 (0.76%) to $46.41 per barrel on ICE. Gold for delivery in February lost $15 (0.81%) of its value to trade at $1,829.1 per troy ounce on COMEX. March silver declined by $0.2 (0.85%) to $23.56 per ounce. Copper jumped by $0.0545 (1.66%) to $3.3325 per pound.

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